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The IRS on Wednesday announced it would waive penalties for many Americans who are late filing tax returns during the pandemic.

Nearly 1.6 million whistleblowers will automatically receive a collective $1.2 billion in refunds or credits, according to federal agencywith multiple payments expected to come in late September.

That assistance applies to many individuals and businesses who file late 2019 and 2020 tax returns, the IRS said.

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“Throughout the pandemic, the IRS has worked hard to support the nation and provide assistance to people in various ways,” said IRS Commissioner Chuck Rettig.

“The acquittal issued today is another way the agency supports people during this unprecedented time,” he said.

Disclaimer applies to agencies late submission fine of 5% of your unpaid balance per month, capped at 25%. A late payment penalty of 0.5% per month may still apply.

Eligible tax returns include individuals, corporations, estates and trusts and more, according to an IRS notice. However, you must file your tax return by September 30 to qualify, the IRS says.

Tax pros say IRS leniency ‘very welcome’

By Blanca

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